The Federal government has saved $400 million through fuel subsidy removal from the 2020 budget.
The Group managing director of the Nigerian National Petroleum Corporation, NNPC, reveal this in an interview.
He said it is unlikely that fuel subsidy will return despite the rising crude oil prices.
My personal view is that subsidy should be removed, and the funds deployed to areas of the economy particularly road infrastructure and education that need funds.
Fuel subsidy is a misallocation of resources and it benefits mainly people who don’t need it; the rich.
What we need is an investment that upgrades the general good of the society and provides access and opportunity for social mobility for the poor.
I do not foresee the return of subsidy when oil price rebounds.
Just by removing subsidy in the 2020 budget, the nation is able to save over $400million.
The savings will better deployed to education or upgrade of the critical infrastructure in the country.